Bellway anticipates subdued sales

NEWCASTLE: Housebuilder, Bellway forecast "subdued" sales in the second half of this year because of the dearth of mortgage finance.

"Historically there is always an uplift in weekly home reservations as the traditional spring selling season unfolds," the company said in a statement.

"However, with mortgage providers continuing to require a high level of deposit, particularly for first-time buyers, we expect trading conditions during the first half of 2010 to be subdued relative to historic levels.

"Nevertheless, the board considers that the group is currently well positioned and is trading profitably with a high level of targeted output already secured and no borrowings. This should enable Bellway to take advantage of opportunities as and when they arise," the company said.

For the six months ending in January, Bellway sold 2247 homes, up 12% from the 2014 sold in the same period last year. However, pricing remained unchanged, with the average home still selling for £156 000.